GIS raised 2009 earnings guidance as consumers continued to trade down to eating at home. Higher sales came as the result of new product offerings as well as increased consumer marketing.
General Mills raised its full year profit guidance, but reported weaker than expected 3Q numbers. Excluding gains from heding, the company's EPS was 77 cents, below analysts' expectations of 88 cents.
General Mills recalled two peanut containing products as a protective measure against possible salmonella contamination stemming from peanuts processed by the Peanut Corporation of America.
A Citi analyst reiterated his buy rating on General Mills, writing that the company is on track to meet 2009 sales and profit expectations. He also cited the company's innovation in developing and marketing new products as key to overcoming a stronger dollar and higher input costs.
General Mill fiscal Q1 income fell 3.6% amid as its commodity hedges fell in value. Revenue rose 14% to $3.5 billion as the company benefited from cash strapped families preferring to stay at home to eat. Margins remained under pressure falling to 34.1% from 37.6%.
General Mills reported at 17% drop in net on reduced gains from hedging. The latest report did contain a few bright spots however. The company's price increases and hedging strategies are offsetting rising input costs. International sales also surged 21% on strong organic growth and a weaker dollar.
General Mills reported profit climbed 61 percent in the third quarter to $430.1 million from $267.5 million a year earlier. The company benefited from strong demand, price increases and commodity hedges which more than offset the impact of rising prices for grains.
General mills reported a 1.3% increase in Q2 net income to $390.5 million, or $1.14/share, beating estimates by a penny. Sales rose nearly 7% to $3.7B.
General Mills issues its Q1 earnings report. Net sales grew 7%; segment operating profit increased 9%; earnings after tax rose 8%; and earnings per share grew 9% to reach $0.81 for the quarter.